Major announcement on basic pay, HRA, arrears likely today

The representatives of the central government employees are expected to meet the Finance Ministry officials to seek update on higher allowances under the 7th Pay Commission. At the meeting, the union leaders are likely to raise the issue of house rent allowance (HRA) and arrears on higher allowances under the 7th Pay Commission. It is believed some major announcement would be made on basic pay, HRA and arrears on allowances under the 7th Pay Commission. The delegation of the union leaders are also expected to discuss hike in basic pay under the 7th Pay Commission.

The Lavasa Committee, had on April 28, suggested modifications in some allowances applicable universally to all employees and also for those in specific categories, including railways and defence, after examining the 7th Pay Commission recommendations.

Last month, the Union Cabinet approved important proposals relating to modifications in the 7th CPC (Central Pay Commission) recommendations on pay and pensionary benefits in the course of their implementation.

The benefit of the proposed modifications will be available with effect from 1st January, 2016, i.e., the date of implementation of 7th CPC recommendations. With the increase approved by the Cabinet, the annual pension bill alone of the Central Government is likely to be Rs 1,76,071 crore.